Stock market today: India’s stock indices began the day lower on Thursday, following four consecutive days of losses, as worries about foreign investment withdrawals and U.S. visa restrictions left investors hesitant.
By 9:18 IST, the Nifty 50 had decreased by 0.2% to 25,008.5, while the BSE Sensex fell by 0.13% to 81,603.96.
The United States has introduced a $100,000 charge for new H-1B visa applications, raising fears about increased operating expenses for IT companies that depend significantly on U.S. revenue.
On Wednesday, foreign portfolio investors sold Indian equities worth 24.26 billion rupees ($273.43 million), according to preliminary data, bringing their total sales in September to $1.32 billion.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The Indian equity markets started the day on a weak note, influenced by adverse developments in global markets and ongoing concerns about visa restrictions. The benchmark index demonstrated some resilience near its support levels; however, persistent pressure hindered any meaningful recovery, ultimately resulting in a negative closing. Eventually, the Nifty 50 index closed at around 25,060, down 0.45 percent for the day.
The bulls have failed to demonstrate any significant comeback in the recent period, as the Nifty 50 index has experienced a decline for the fourth consecutive session, now nearing critical support levels. Additionally, the Advance-Decline ratio significantly showcased the market breadth skewed towards the bears, indicating a sign of caution.
On the levels front, the 25,000 mark continues to serve as a significant support threshold for Nifty 50, which is anticipated to mitigate any further declines in the near term, followed by the strong technical support of 24,915-24,890 (confluence of 50 DEMA and a bullish gap on the daily chart), which is likely to act as sacrosanct support and could provide a breather. On the flip side, the recent breakout zone of 25,150-25,200 is likely to be viewed as an intermediate hurdle, followed by the 25,300 zone in the near term.
Considering the current heightened uncertainty, it is advisable to exercise selectivity in stock selection from a trading perspective. Concurrently, traders should maintain light positions and remain informed about global developments that may serve as catalysts for trend formation in our markets.
Stocks To Buy on Thursday- Osho Krishan
On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Oil and Natural Gas Corporation Ltd (ONGC), and Power Grid Corporation of India Ltd.
ONGC share price is demonstrating a strong position by trading above its cluster of short-term EMAs, which reflects traction in the counter. Additionally, the positive crossover observed in the MACD near the zero line, indicates a potential for bullish momentum. Additionally, the recent move construes a consolidation breakout, adding to the bullish quotient. Furthermore, from a risk-reward standpoint, the stock appears to offer an attractive opportunity for short-term investments.
Hence, we recommend to BUY ONGC share price around ₹238, keeping a stop loss at ₹232 for potential upside Target of ₹248-252.
Power Grid Corporation of India has demonstrated significant consolidation near its 100-DEMA over the past couple of trading weeks, resulting in the stock entering a consolidation zone. Nevertheless, recent trading sessions indicate a resurgence in momentum, driven by short covering and some build-up in longs, also bolstered by favorable technical indicators. The stock has surpassed all major EMAs and 200 DSMA on the daily charts. Furthermore, from a risk-reward perspective, the stock appears to be strategically positioned, presenting a positive outlook from a short-term investment standpoint.
Hence, we recommend to BUY Power Grid Corporation of India around ₹290, keeping a stop loss at ₹282 for potential upside Target of ₹302-304.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
